| > | | | | In terms of quality and experience, the site took a |
| The web is full of free tools and 401(K) calculator | | | | little over 9 minutes to complete the questionnaire |
| functions that promise to help you plan for your | | | | and calculate the final results. Overall, it was easy to |
| retirement and sort out your long-term investment | | | | use and lets you include extra income sources like a |
| needs. | | | | part-time job or investment returns. The one major |
| There are hundreds, if not thousands, of websites | | | | drawback is that you can't fiddle with the numbers or |
| offering a 401(K) calculator or retirement calculator - | | | | make major adjustments without starting over from |
| all promising to show you exactly how much you | | | | the beginning. |
| need to save for your retirement. | | | | Calculator: Nationwide's Retirability (URL: |
| However, each of these tools use different | | | | nationwide.com/nw/nrri/index.htm?wtgo=retirability) |
| calculation strategies and different assumptions, | | | | Nationwide's retirement calculator tool actually gives |
| meaning they all give you varying advice. | | | | you a score based on your readiness for retirement. |
| To answer the question of which calculator produces | | | | Our test subject scored 88, a poor ranking when 100 |
| the best results, we decided to test three different | | | | and up should be your overall goal. |
| online calculators (only free ones). | | | | In terms of quality and ease of use, the site was |
| As an example test subject we used a single, | | | | fairly fast and provided clear results. It took about 8 |
| 45-year old male currently earning $50,000 per year | | | | minutes to complete the questionnaire and calculate |
| with a small mortgage, $90,000 in a 401(K) and a | | | | the results. Afterwards, it provided clear and easy to |
| savings rate of about 10% per year. | | | | read results. Another bonus factor? It lets you input |
| Our "test subject" has a goal of retiring in 20 years | | | | major assets like home equity. |
| (at 65) and living on $50,000 per year with a life | | | | The AARP Retirement Calculator (Online at: aarp.org |
| expectancy of 100 years. | | | | money/financial_planning/sessionseven |
| To find out how each 401(K) calculator on the web | | | | retirement_planning_calculator.html) |
| rated, along with their recommendations, keep | | | | At the moment, our test subject is saving just over |
| reading. | | | | $400 in his retirement savings. According to the |
| Calculator: Ballpark Estimate (URL: choosetosave.org | | | | AARP calculator, that amount needs to increase to |
| ballpark) | | | | $1600 in order to meet his goal of full retirement at |
| The Ballpark Estimate Calculator has some bad news | | | | 65. |
| - our test subject will have to save close to 56% of | | | | The 401(K) calculator took about 10 minutes to use. |
| his annual salary to meet his goal of retiring by the | | | | Though not as flashy as the other tools on this list, it |
| time he's 65 with a 100% post-retirement income of | | | | provided clear and easy-to-understand results that |
| $50,000. Prospects are grim for our test subject, | | | | were complimented by a graph and easily editable |
| unless he opts for riskier investments. | | | | variables. |